SOLUTION: suppose that the distribution is bell shaped. if approximately 68% of the relative increase in stock price lie between .61% and .87%, then the approximate value of the standard dev
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Question 255037: suppose that the distribution is bell shaped. if approximately 68% of the relative increase in stock price lie between .61% and .87%, then the approximate value of the standard deviation for the distribution is ? Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! suppose that the distribution is bell shaped. if approximately 68% of the relative increase in stock price lie between .61% and .87%, then the approximate value of the standard deviation for the distribution is ?
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68% lies within one standard deviation of the mean.
So 0.87-0.61 = 0.26 is 2 standard deviations (one to the left
and one to the right of the mean).
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So one std is 0.26/2 = 0.13 or 13%
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Cheers,
Stan H.
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